Sustained inflation across key agricultural inputs since the start of the fuel crisis is placing renewed pressure on farming viability, the Ulster Farmers’ Union (UFU) has warned.

According to the union, this is "exposing the vulnerability" of domestic food production to geopolitical and energy market instability.

Latest UK agricultural price statistics show that fertiliser prices were at least 25.9% higher in June than a year earlier, and energy up 20%, the UFU said.

At the same time, the price index for agricultural outputs was 4.3% lower year-on-year.

According to the UFU, sustained volatility in energy and agricultural input markets has serious implications for the agricultural sector in Northern Ireland in terms of competitiveness, investment, and long-term productive capacity.

It said: "As a region with a strong food-producing base, protecting that capacity must be recognised as a strategic priority, particularly when geopolitical instability continues to expose vulnerabilities in global supply chains."

NI agricultural income

The union added that the latest Northern Ireland agricultural income figures further demonstrate the scale of the cost base facing the industry.

In 2025, expenditure on fertilisers and lime increased by 32% to £133 million, while total gross inputs across Northern Ireland agriculture reached £2.18 billion.

UFU deputy president Glenn Cuddy said: “Six months on, the impact of geopolitical instability continues to be reflected in the costs facing our farm businesses.

“Fuel, fertiliser and energy are fundamental agricultural inputs and sustained increases are having a direct impact on margins, investment decisions and ultimately the capacity of farms to maintain viable production.

“At the very least, we need the government to extend their welcome rebated fuel duty cut at 6.48p per litre beyond December 2026 to avoid a damaging 72% increase.”

Domestic food security

The UFU deputy president said a strategy is needed.

He said: “The government must begin to take domestic food security seriously with a real framework as part of national security and contingency planning.”

Cuddy also called for “a greater understanding and appreciation from the public as to the pressures our farmers are under whilst keeping the shelves full”.

He added that “joined-up thinking" is needed from all administrations .

Cuddy said: “What is particularly concerning is the disconnect between rising production costs and the return available.

“There must be a sustainable return for agricultural produce which properly reflects the cost and risk involved in its production.”

Past six months

The UFU said the experience of the past six months should reinforce the need for food production to be considered as part of the UK’s wider approach to economic and national security.

Cuddy said: “Food security is national security.

“That cannot simply be a phrase used during periods of international instability, it must be reflected in policy and in the way government values our sector.

He added that Northern Ireland an established production base, with skilled farmers, a significant agri-food sector and the capacity to make an important contribution to UK national security.

The UFU deputy president also said that maintaining that capacity requires farm businesses to be economically sustainable.

“Government policy must recognise that resilience begins with the primary producer.

“Farmers are accustomed to managing volatility, but resilience cannot be interpreted as an unlimited capacity to absorb cost increases," Cuddy stated.

He added that a resilient food system requires a viable primary production sector, fair and functioning supply chains and government policy that recognises food production as a long-term strategic priority.

“Protecting food security means protecting the productive capacity that underpins it, and that starts with ensuring farmers can secure a sustainable return for what they produce," Cuddy said.